Commercial Real Estate

Foundation Health Signs Warner Lease

Foundation Health Systems Inc. in Woodland Hills has signed a six-year lease for more than 101,000 square feet at Warner Center Plaza III, pushing occupancy past 90% in the 585,000-square-foot skyscraper, which sat vacant for much of the 1990s as a result of the Southern California real estate slump.

Parties to the lease didn't disclose its value, but the transaction would represent a total consideration of at least $15 million at current asking rates of $25 to $30 per square foot per year for prime Woodland Hills office space.

Don Hudson, leasing director for Warner Center Properties, called the lease "a milestone" both for the building and for the Woodland Hills office market, where the Warner Center Plaza III building for many years was largely responsible for a glut of premium office space in the area. The building was completed in 1991, just as the Southern California office market went into recession, and remained 80% vacant as recently as 18 months ago.

Hudson and Bob Pearson of Warner Center Properties represented the landlord in the lease negotiations. Foundation Health was represented by Mel Solway of CBS Associates.